Sales and earnings development

Development of group sales by region

Group sales of METRO GROUP 2015/16

by region

Group sales of METRO GROUP 2015/16 (pie chart)

Like-for-like sales in Germany rose by 0.2 per cent. Reported sales even grew by 0.6 per cent to €22.6 billion thanks to positive contributions from METRO Cash & Carry and Media-Saturn in particular. In contrast, sales at Real declined largely as a result of store closures.

Like-for-like sales in the international business increased by 0.2 per cent. International sales rose slightly by 0.2 per cent in local currency. Reported sales fell by 2.5 per cent to €35.8 billion due mostly to currency effects as well as store disposals and closures.

The international share of total sales stood at 61.3 per cent (2014/15: 62.0 per cent).

In Western Europe (excluding Germany), like-for-like sales declined by 0.7 per cent. Sales declined slightly by 0.2 per cent in local currency. Reported sales also declined by 0.2 per cent to €19.1 billion, which can be attributed mostly to the negative sales trend in Italy and Switzerland. In contrast, Spain and Belgium registered very positive sales developments.

Like-for-like sales in Eastern Europe increased by 0.8 per cent. Adjusted for currency effects, sales improved by 1.2 per cent. However, due to the adverse currency movements, reported sales fell by 6.4 per cent to €12.5 billion, with negative currency effects in Russia and Poland in particular weighing on sales. Positive sales trends were recorded in Hungary, Turkey, Serbia and Bulgaria in particular.

Like-for-like sales in Asia increased by 2.4 per cent. Sales fell slightly by 0.8 per cent in local currency. Reported sales declined by 1.2 per cent. This decline was exclusively due to the sale of the activities in Vietnam as their sales contribution was only included in the figures for the first quarter of 2015/16. Without Vietnam, sales in Asia would have increased markedly by 8.9 per cent thanks partly to the acquisition of Classic Fine Foods and very positive sales developments in India.

Development of group sales

by sales line and region

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Change in % compared with the previous year’s period

 

 

 

 

 

 

 

 

2014/15 € million

2015/16 € million

in group currency (€)

Currency effects in percentage points1

in local currency

like-for-like sales in local currency

1

The currency effect is calculated by comparing reported sales of the current financial year in euros with sales of the previous period, converted at the average exchange rate of the current financial year

METRO Cash & Carry

29,690

28,999

−2.3

−2.7

0.4

0.6

Media-Saturn

21,737

21,869

0.6

−1.0

1.6

0.1

Real

7,735

7,478

−3.3

0.0

−3.3

−1.1

Others

56

72

METRO GROUP

59,219

58,417

−1.4

−1.7

0.4

0.2

thereof Germany

22,490

22,622

0.6

0.0

0.6

0.2

thereof international

36,728

35,795

−2.5

−2.8

0.2

0.2

Western Europe (excl. Germany)

19,090

19,054

−0.2

0.0

−0.2

−0.7

Eastern Europe

13,318

12,472

−6.4

−7.6

1.2

0.8

Asia

4,319

4,269

−1.2

−0.4

−0.8

2.4

The reconciliation from reported sales to like-for-like sales in local currency is shown in the following:

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€ million

2014/15

2015/16

1

Sales in local currency of the previous year were calculated by converting reported sales of the previous year at the average exchange rate of the current financial year

2

Not included in the like-for-like panel are, among others, new openings, stores in start-up phase, closures, cross-divisional service companies and major refurbishments

Total sales in € (as reported)

59,219

58,417

Total sales in local currency1

58,209

58,417

Sales of stores that were not part of the like-for-like panel in 2015/162

2,830

2,935

Like-for-like sales in local currency

55,379

55,482

Development of group EBIT and EBIT of the sales lines

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EBIT1

 

 

 

€ million

2014/15

2015/16

1

Before special items

METRO Cash & Carry

1,050

1,043

Media-Saturn

442

454

Real

88

100

Others

−63

−33

Consolidation

−5

−5

METRO GROUP

1,511

1,560

Sales and earnings development of the sales lines

METRO Cash & Carry

Sales of METRO Cash & Carry 2015/16

by segment

Sales of METRO Cash & Carry 2015/16 (pie chart)

METRO Cash & Carry launched the New Operating Model in financial year 2015/16 to improve its business management. In the context of the introduction of the new management model, the individual METRO Cash & Carry countries were divided into the following segments:

  • Horeca: focusing on hotels, restaurants, catering firms
  • Multispecialists: focusing on Horeca, traders and SCO (service, companies and offices)
  • Traders: focusing on independent resellers such as kiosk operators, bakers and butchers
  • Others: trading offices (procurement offices) and countries from which METRO Cash & Carry has withdrawn

Since the first quarter of 2015/16, sales and earnings of METRO Cash & Carry have been reported based on this new structure. The new segments thus replace the previous reporting regions of Germany, Western Europe, Eastern Europe and Asia. The Horeca cluster includes France, Germany, Italy, Japan, Portugal, Spain, Turkey and Classic Fine Foods. Multispecialists include Austria, Belgium, Bulgaria, China, Croatia, India, Kazakhstan, the Netherlands, Pakistan, Russia, Serbia, Slovakia, the Czech Republic and Hungary. The traders segment includes Moldova, Poland, Romania and Ukraine.

Like-for-like sales of METRO Cash & Carry increased by 0.6 per cent in financial year 2015/16, with consistent quarterly sales growth meaning that the sales line has now recorded sales increases in each quarter for more than three consecutive years. Sales rose by 0.4 per cent in local currency. However, exchange rate developments – particularly relating to the Russian rouble – and portfolio effects caused reported sales to decline by 2.3 per cent to €29.0 billion.

Sales in the delivery business continued their strong momentum, rising by 20.4 per cent in local currency. Reported sales increased by 17.9 per cent to €3.7 billion (2014/15: €3.1 billion). The acquisition of Classic Fine Foods also contributed to this positive development. The share of the delivery business in total sales climbed to 12.8 per cent (2014/15: 10.6 per cent).

Like-for-like sales in the Horeca segment rose by 0.9 per cent in financial year 2015/16. In Germany, like-for-like sales were slightly higher than a year earlier, while like-for-like sales in France – due also to the effects of the terror attacks and strikes – fell slightly short of the previous year’s figure. Conversely, Turkey, Spain and Italy, in particular, contributed to the growth in like-for-like sales. Sales in local currency in the Horeca segment increased by 3.3 per cent. Reported sales rose by 2.6 per cent.

Like-for-like sales in the multispecialists segment declined slightly by 0.2 per cent in financial year 2015/16. Here, Belgium and the Netherlands, in particular, recorded distinctly lower sales. Although like-for-like sales in Russia continued their decline, the trend reversed over the course of the year. In contrast, sales in India registered strong growth. Measured in local currency, sales in the multispecialists segment rose by 1.2 per cent. Reported sales, in turn, declined by just 3.4 per cent due to currency effects.

Like-for-like sales in the traders segment rose by 2.6 per cent in financial year 2015/16. With the exception of Poland, like-for-like sales climbed in all countries. Measured in local currency, sales in the traders segment rose by 1.5 per cent. Reported sales, in turn, declined by 3.6 per cent due to currency effects.

In financial year 2015/16, the share of international business in the total sales of METRO Cash & Carry fell slightly from 84.0 per cent to 83.6 per cent as a result of currency effects.

EBIT at METRO Cash & Carry totalled €1,259 million in financial year 2015/16 (2014/15: €975 million). This figure includes positive special items from the sale of the activities in Vietnam (€446 million) and expenses for restructuring and efficiency-enhancing measures. The net balance of these special items is positive at €216 million (2014/15: expenses of €75 million).

EBIT before special items amounted to €1,043 million (2014/15: €1,050 million), almost matching the previous year’s figure despite negative currency effects of €65 million. Adjusted for these effects, EBIT before special items improved by €58 million.

On 30 September 2016, METRO Cash & Carry operated 752 stores located in 25 countries. Of these stores, 106 were in Germany, 235 in Western Europe (excluding Germany), 284 in Eastern Europe and 127 in Asia. Additional countries were covered by the activities of Classic Fine Foods and Rungis Express. Overall, METRO Cash & Carry has operations in 36 countries.

Key figures METRO Cash & Carry 2015/16

in year-on-year comparison

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Change in % compared with the previous year’s period

 

 

 

 

 

 

 

 

2014/15 € million

2015/16 € million

in group currency (€)

Currency effects in percentage points1

in local currency

like-for-like sales in local currency

1

The currency effect is calculated by comparing reported sales of the current financial year in euros with sales of the previous period, converted at the average exchange rate of the current financial year

2

Before special items

3

Before special items; the EBIT margin shows the EBIT/sales ratio

Sales

29,690

28,999

−2.3

−2.7

0.4

0.6

Horeca

13,642

13,993

2.6

−0.7

3.3

0.9

Multi- specialists

12,496

12,065

−3.4

−4.6

1.2

−0.2

Traders

2,906

2,802

−3.6

−5.0

1.5

2.6

Others

646

138

EBIT2

1,050

1,043

EBIT margin (%)3

3.5

3.6

Locations (number)

764

752

Selling space (1,000 m2)

5,468

5,380

Media-Saturn

Sales of Media-Saturn 2015/16

by region

Sales of Media-Saturn 2015/16 (pie chart)

Like-for-like sales of Media-Saturn increased by 0.1 per cent in financial year 2015/16. Sales in local currency rose by 1.6 per cent while reported sales grew by 0.6 per cent to €21.9 billion.

Online retail maintained its strong momentum: The Media Markt and Saturn brands boosted their online sales by about 35 per cent to €1.6 billion. In contrast, the pure online business that is not linked to the sales line’s store-based business declined mostly as a result of the closure of selected unprofitable wholesale businesses at Redcoon. All in all, online sales (including in-store pick-up by customers) increased by about 11 per cent to €2.0 billion. As a result, online retail now accounts for nearly 9 per cent of Media-Saturn’s total sales, a new record.

Like-for-like sales in Germany increased by 1.2 per cent. Reported sales rose by 3.3 per cent to €10.3 billion, enabling Media-Saturn to continue to strengthen its market position in Germany.

In Western Europe (excluding Germany), like-for-like sales declined by 1.0 per cent. Like-for-like sales declined in Switzerland and Italy in particular, but increased in Spain and the Netherlands. Sales in local currency improved by 0.4 per cent. Reported sales also rose by 0.4 per cent to €8.9 billion.

Like-for-like sales in Eastern Europe fell slightly by 0.6 per cent due mostly to the negative trend in Russia and Poland. In contrast, sales increased in Turkey and Hungary. Sales in Eastern Europe declined by 0.9 per cent in local currency. Due mostly to negative currency effects, reported sales decreased by 8.1 per cent.

The international share of sales declined from 53.9 per cent to 52.7 per cent in financial year 2015/16.

EBIT at Media-Saturn fell to €300 million in financial year 2015/16 (2014/15: €336 million). This figure includes higher special items of €154 million (2014/15: €107 million). These items involved numerous restructuring and efficiency-enhancing measures. EBIT before special items climbed from €442 million to €454 million.

On 30 September 2016, Media-Saturn had 1,023 consumer electronics stores in 15 countries, including 424 in Germany, 377 in Western Europe (excluding Germany) and 222 in Eastern Europe.

Key figures Media-Saturn 2015/16

in year-on-year comparison

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Change in % compared with the previous year’s period

 

 

 

 

 

 

 

 

2014/15 € million

2015/16 € million

in group currency (€)

Currency effects in percentage points1

in local currency

like-for-like sales in local currency

1

The currency effect is calculated by comparing reported sales of the current financial year in euros with sales of the previous period, converted at the average exchange rate of the current financial year

2

Before special items

3

Before special items; the EBIT margin shows the EBIT/sales ratio

Sales

21,737

21,869

0.6

−1.0

1.6

0.1

Germany

10,016

10,344

3.3

0.0

3.3

1.2

Western Europe (excl. Germany)

8,843

8,881

0.4

0.0

0.4

−1.0

Eastern Europe

2,878

2,644

−8.1

−7.2

−0.9

−0.6

EBIT2

442

454

EBIT margin (%)3

2.0

2.1

Locations (number)

1,007

1,023

Selling space (1,000 m2)

3,034

2,976

Real

Real’s like-for-like sales declined by 1.1 per cent in financial year 2015/16. Due mostly to store closures, reported sales fell by 3.3 per cent to €7.5 billion. The competitive environment in German food retail remains very tenuous and deflationary trends in a large number of product groups are weighing on sales development.

At the beginning of June 2016, Real and its collective bargaining partners agreed on the heads of terms of a new bargaining contract and thus created a good foundation for the future.

Online sales continued to develop very positively, again rising markedly by nearly 50 per cent to €68 million in financial year 2015/16.

EBIT at Real totalled €103 million in financial year 2015/16 (2014/15: €−441 million). EBIT in the previous year still included special items for non-cash impairment losses on goodwill and store closures in particular.

EBIT before special items climbed from €88 million to €100 million. This improvement, which was achieved despite the decline in sales, was partly due to improved purchasing terms, the successful conclusion of collective bargaining negotiations and closures of loss-making stores.

In financial year 2015/16, Real’s German store network was reduced by 8 to 285 stores.

Key figures Real 2015/16

in year-on-year comparison

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Change in % compared with the previous year’s period

 

 

 

 

 

 

 

 

2014/15 € million

2015/16 € million

in group currency (€)

Currency effects in percentage points

in local currency

like-for-like sales in local currency

1

Before special items

2

Before special items; the EBIT margin shows the EBIT/sales ratio

Sales

7,735

7,478

−3.3

0.0

−3.3

−1.1

Germany

7,735

7,478

−3.3

0.0

−3.3

−1.1

EBIT1

88

100

EBIT margin (%)2

1.1

1.3

Locations (number)

293

285

Selling space (1,000 m2)

2,031

1,967

Others

The Others segment comprises, among others, METRO AG as the management holding company of METRO GROUP, the procurement organisation in Hong Kong, which also operates on behalf of third parties, as well as logistics services and real estate activities of METRO PROPERTIES, which are not attributed to any sales lines. These include, for example, speciality stores, warehouses and head offices.

In financial year 2015/16, sales in the Others segment totalled €72 million (2014/15: €56 million). Among other things, sales include commissions for third-party business through METRO GROUP’s procurement organisation in Hong Kong as well as the 4 Real stores in Romania since 1 October 2014.

EBIT totalled €−145 million in financial year 2015/16 (2014/15: €−152 million). Special items amounted to €113 million (2014/15: €89 million) and primarily relate to one-time expenses in connection with the demerger of METRO GROUP as well as restructuring measures at METRO AG and in the logistics area. EBIT before special items amounted to €−33 million (2014/15: €−63 million). Aside from income from real estate, this figure also includes income from the dissolution of obligations for post-employment benefits plans in the amount of €35 million.

Discontinued operations

In financial year 2015/16, lagging effects from the sale of the department store business in profit or loss for the period from discontinued operations resulted in income of €49 million. It comprises gains from the dissolution of provisions for risks related to the sale of the department store business as well as gains from the disposal of minority stakes in several real estate companies of the department store business to its buyer.